STAMFORD, Conn., August 30, 2017 -
Pitney Bowes (NYSE:PBI), a global technology company that provides
innovative products and solutions to power commerce, today announced a
48 percent increase in global parcel volume over the last two years, as
reported by its second annual Parcel Shipping Index. Parcel volume has
grown from 44 billion parcels in 2014 to 65 billion in 2016, and the
increase in growth shows no signs of slowing down, with the Index
estimating parcel growth will continue to rise at a rate of 17-28
percent each year between 2017 and 2021.

China, a new addition to this year’s Index and by far the largest market
examined, grew parcel volume by 52 percent in one year, increasing from
21 billion parcels in 2015 to 31 billion in 2016. But, even when
excluding China’s prolific volumes, the Index forecasts a strong and
accelerating pace of growth in parcels throughout the world. On average,
the other 12 major markets studied have grown 4.3% annually since 2012
and are projected to grow 4.5% - 5.4% annually through 2021.

The United States (at 13 billion) and Japan (at 9 billion) were also
among the largest markets by parcel volume. In terms of investment, the
United States ranked highest, spending $96 billion on parcel shipments,
followed by China at $60 billion and Japan at $22 billion.

“The continued rise of ecommerce globally is keeping the parcel shipping
market strong through 2021 as consumers are increasingly looking to
online shopping for convenience, price and availability of products from
around the world,” said Lila Snyder, executive vice president and
president, Global Ecommerce, Pitney Bowes. “As consumer expectations
continue to rise, shipping technology and service providers will need to
help retailers and marketplaces meet those demands.”

Results from the Parcel Shipping Index point to rapid growth and last
mile delivery challenges – when a parcel is transported from a hub to
the end-user – as driving innovation across markets. New trends and
emerging technologies, such as parcel lockers, crowd-shipping, on-demand
delivery services, evening and weekend delivery and drones, are
impacting the customer shipping experience by shortening delivery times,
lowering delivery costs and adding flexibility.

“Managing the growing demands and navigating the evolving landscape of
parcel shipping can be complicated for organizations of all sizes, from
large enterprises to small businesses,” said Mark Shearer, executive
vice president and president, Global SMB Solutions, Pitney Bowes.
“Digital transformation of a company’s shipping workflow—like the
integration of SaaS-based multi-carrier platforms—can help to better
enable carrier, timing and cost efficiencies for companies, as well as
improve customer experiences through the addition of tracking
capabilities, simplifying and streamlining processes for both senders
and recipients.”

A breakdown of key results across major markets is included below.

United States Continues to Lead the World in Parcel Spend

Americas (Brazil, Canada, United States)

Of the 13 countries analyzed, the United States remains the largest
market in terms of spend, recording $95.8 billion in 2016. Parcel
volume also increased by 8.2 percent year-over-year, up from 12
billion parcels in 2015 to 13 billion parcels in 2016.

The annual parcel shipping market in Brazil grew by 13 percent in
spend from 2015 to R$11.6 billion in 2016 and 9 percent in volume, up
from 558 million parcels in 2015 to 609 million in 2016.

In Canada, annual parcel spend increased by 2.6 percent, up from $7.1
billion CAD in 2015 to $7.3 billion CAD in 2016. Volume also grew by
4.4 percent from 2015 to 597 million parcels in 2016.

Germany is the Largest European Parcel Market in both Volume and Spend

Europe (France, Germany, Italy, Norway, Sweden, United Kingdom)

Germany is the largest European parcel market – in terms of both
volume and spend. Parcel spend increased by 6 percent to €14 billion
in 2016. Similarly, parcel volume increased by 6.7 percent to 3.3
billion in 2016. Of note, business to consumer shipments represented
58 percent of all parcels in Germany in 2016.

In 2016, the parcel shipping market in France grew by 3 percent in
spend to €10 billion, and 4 percent in volume to 1.6 billion.

With a 2014-2016 compound annual growth rate (CAGR) of 12 percent,
Italy is among the top three fastest growing markets by volume in the
Index. From 2015-2016, parcel volume increased by 10 percent to 801
million parcels, and spend increased by 3 percent to reach €5 billion
in 2016.

The parcel shipping market in Norway increased by 4 percent in spend
to 6.3 billion kr, and by 6 percent in volume to 38 million in 2016.

In Sweden, parcel spend grew by 6 percent to 4.4 billion kr, and
volume grew by 9 percent to 108 million in 2016.

In the United Kingdom, parcel spend increased by 8 percent to £9.7
billion, and volume increased by 12 percent to 2.5 billion in 2016.

Pitney Bowes (NYSE:PBI) is a global technology company powering billions
of transactions – physical and digital – in the connected and borderless
world of commerce. Clients around the world, including 90 percent of the
Fortune 500, rely on products, solutions, services and data from Pitney
Bowes in the areas of customer information management, location
intelligence, customer engagement, shipping, mailing, and global
ecommerce. And with the innovative Pitney Bowes Commerce Cloud, clients
can access the broad range of Pitney Bowes solutions, analytics, and
APIs to drive commerce. For additional information visit Pitney Bowes,
the Craftsmen of Commerce, at www.pitneybowes.com.

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